tv Bloomberg Daybreak Asia Bloomberg December 15, 2016 7:00pm-8:01pm EST
>> the dollar cemented domination of the currency market trading at a near 14-year high against the euro. crown resorts surges on its return to trade after packer sounded the retreat. it's a question of security. yahoo's latest race, verizon to rethink its approach. donald trump, jamie dimen says he is right.
this is the second hour of daybreak asia coming to you live from bloomberg headquarters in asia where it's just after 8:00 a.m. it is just after 7:00 p.m. here in new york. as we were talking about last hour it's been this in the u.s. markets after being taken down because the of the expectation the fed is going to raise rates even faster than expected. now some nay-sayers are coming out and some people still very euphoric in trump and hi economic policies. evon: yes, quite a bit when it comes to comparing it here in the region. a yield differential when it comes to the bond market with the rising yields, not seeing the same effect in japan. we just broke earlier the 10-year bond arriving to 0.1%. how is the b.o.j. controlling that with the yield curve control now is the big question. let's go to the market open eal quick to see the reaction.
>> it looks like we could be setting up for a reasonable session as we close out the trading week. we were expecting a pop at the open when it comes to japan and have indeed gotten that. nikkei up by 0.7% although already pulling back a little bit from the early session highs. we have the topix as of yesterday raising, so that one analyst saying if you just close your eyes and pretend that 2016 didn't happen, you know, we may actually end the year looking pretty okay. this is what we're seeing so far. you've got kospi up by about 0.1%. australia still looking a little weak. it is an energy heavy market of course with the maynors dragging as well. new zealand the upside about 0.4%. as you said, yvonne things really moved in the market. government bonds, japan, the 10-year yield on the j.g.b. the highest since
january 29 when the b.o.j. went into negative rates. so we're seeing really strong moves when it comes to japanese bonds at the moment. keep in mind the b.o.j.'s target is at around 1%. see if there is any move from policy makers over the next day or two. let's take a look elsewhere around the region. because if you take a look at sort of the broader sector breakdown we're seeing quite nice gains when it comes to consumer goods tracking those gains we saw when it comes to o and gas. utilities. financials as well as minors in particular when it comes to the australian markets there. what is really going to be driving today again is the rampage of the dollar. we know the story when it comes to dollar/euro. 13-year high. saying we're going to see parity going into 2017 but dollar/yen is what this side of the world is focused on at 118. very nice to that equity session in tokyo. we are nearing the highs of the year when it comes to
dollar/yen. yvonne, betty? betty: hadi, thanks. our top story in asia this morning, the u.s. treasuries have dropped the lowest in more than six years as beijing uses its currency reserves to prop up the yen. yvonne: let's get to our correspondent who has been looking into this story for us. how big the sell off? >> big enough for china to no longer be the top creditor for the u.s. that crown is now taken by japan because in the month of october between september and october it saw its holdings of u.s. treasuries fall 41.3 billion u.s. dollars. they are now standing around 1.12 trillion u.s. dollars. compare that to the peak when china held 1.3 trillion dollars of u.s. treasuries. you can see how much this has fallen off. now, this is as you say the level now since july, 2010. and it ties in of course to the wider picture when it comes to china's excess reserve we've seen being drawn down from the
peak of around $4 trillion to around $3.05 trillion. we do have a chart. i should reference that. it shows the spread between japan's holdings of u.s. treasuries versus china's holdings of u.s. treasuries and how that has tightened and then japan picking up just for the month of october. the trend is being set there. this is about the reserves being drawn down trying to support the u.n. of course all tied to that dollar rampage that haidi was talking to. with further rate hikes expected in the u.s. in 2017 this trend is expected to continue. yvonne: tom, china's leaders are gathering to discuss priorities for next year. what is likely to be on tap? tom: that's right. top leaders gathering in beijing today were expected to give some details out of that meeting later in the day beijing time. the priorities clearly are going to be around stability. economic stability and the lead up to this crucial political event next year which the
communist party congress in 2017 where we're likely to see a leadership reshuffle. they are not wanting to see any instability of any sort, economic or social leading up to that. that's going to be a priority. tackling debt feeds into that picture of course. total debt here in china 250% debt to gdp. a big portion is the corporate debt, nonforming loans and defaults in focus as well as will the capital outflows which goes into the weakness of the yuan of course and the measures put in place to try to curb those. will we see more of those measures? quite likely. the property sector, of course we see things in place to try to rein in the property prices. the real estate market is so crucial to economic growth here and is going to be in focus as well as will things like driving innovation and opening up the capital markets as much as they can in this weak yuan strong dollar environment. those are some of the key policies. also very likely to discuss of
course are trump's policies toward china that were unlikely to get that involved or mentioned in the official communique. betty: tom, thank you so much. there in beijing for us. now to the first word news. >> thanks so much, betty. first update, beijing has issued the highest pollution warning of the year. authorities say heavy smog is expected through the weekend. there is a red alert from friday evening. some vehicles will be stopped from entering the city. young people and the elderly are warned to stay indoors. shanghai has issued a similar warning with air quality eight times above internationally accepted safe levels. japan and russia have agreed to cooperate on the running of four islands and ex-ed by the soviet union at the end of world war ii, a divide that has prevented the two countries from signing a peace treaty. the two leaders discussed a system of joint economic activity on what are known as the northern territories in japan and the south careos in
russia. the plan included medicine, tourism, and fishing. oracle extended trade after sales missed some estimates. revenue last quarter was little changed from a year ago at $9 billion. . at is slightly below sales were dragged down by a steep decline in new software licenses as oracle shifts to offering more programs. wall street banks are about $70 billion short of the funds the fed says they'll need to guard against another collapse. although that figure is down by almost half an earlier estimate. -- ight biggest names according to a rule the fed governors approved on thursday. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg.
>> verizon is having second thoughts about the $4.8 billion acquisition of yahoo's core businesses. yvonne: that follows yahoo's revelation yesterday that as many as a billion user accounts were compromised, hacked. betty: we have more on this and verizon is now looking at two options right? >> yes. one to sweeten the deal to take it down from the $4.8 million price tag or they're thinking maybe they're just going to ax it all together because of what's happened. one billion hacks is nothing to sneeze at. the deal includes yahoo mail, flicker, the photography site tumbler as well as yahoo news. bloomberg gas light talking about how this could impact the deal saying that the markets the price would be lowered as much as $1 billion and that if it happens would make the hack the most expensive in internet history. so what's happening now? basically, two teams are working in tandem, walled off from each other. one team is still reportedly
focused on the integration that they have been trying to do for the past five months led by tim armstrong. but of course there is a new team focused on probing how bad this hack was. that's led by verizon's general ounsel exploring options ahead of that. he has said it is reasonable to presume the deal itself has had a material impact because of the hack. taking a look at the share price, that is actually falling by more than 6% and that has had a knock on effect in terms of the market cap. hop into the bloomberg. all the way on the right-hand side you can see the number there. 2.4 billion dollars is how much has been lost in just the course of one trading session. the last time that happened was back in may of 2015 almost 20 months ago. with that said, betty, yahoo is
trying, trying to put a face forward that says we are confident in yahoo's value, saying we want to continue to work toward the integration with verizon. they've got to do that, right? of course verizon is staying cautious and saying for their part we will review the impact of the new development before reaching any final conclusions. before anything happens, one of verizon's biggest goals reportedly is to make sure that if they take on yahoo that they're not going to be held legally liable for anything. yvonne, they just basically don't want to get sued. >> just to add to all the troubles ya hoose already facing the first lawsuit over the breach in the first place. >> that's right. the lawsuit came out within the first few hours of yahoo admitting they actuallyhad this hack happen to them. it's a proposed class action lawsuit by a new york consumer. her name is amy veil and the case is called veil vs. yahoo inc. amy veil herself came out by saying this. yahoo failed and continues to fail to provide adequate
protection of users' personal and confidential information. she goes on to say that yahoo has repeatedly compromised, has been repeatedly compromised and remains vulnerable. she is just not talking about the 1 billion accounts hacked ut of course the other case of 500 million accounts also hacked. in total 1.5 billion accounts at least from what we know. betty: incredible. ramy, thank you so much. breaking news. a few days ago j & j gave up a bid to buy actelion. now it looks like sanofi is in advance talks to buy the drug maker discussing a price tag of 5 per share and said the deal could be possible according to people familiar with the matter.
structure. the talks are focused most loin the structure of how the companies would come together. and of course the deal could fall apart at any point. sanofi in advance talks to buy actelion. jpmorgan chief jamie dimeon says donald trump is doing the right thing by appointing business executives to his team. we'll have more in a moment. up next how asian currencies are faring as the dollar dominates. this is book. ♪
yvonne: this is daybreak asia. betty: a quick look at the business headlines at this hour. the former number two at creative group says he is confident of clearing his name of embezzlement charges. the billionaire also plans to overthrow his brother as chairman of a business empire that generates more revenue
than google or airbus. shin spoke to bloomberg about his plans to pull off the takeover and criticized the group's current direction. >> i believe we should diversify our investments because there is more risk in focusing on just a few countries or markets. our investment in china is a bad example of focusing on one country and losing money. i believe we should diversify our investments in southeast sia and other areas. >> pharmaceutical is continuing to get rid of its none core assets and agreed to sell its chemicals business to fuji films for $1.7 billion. once best known for making camera films they've since diversified into health re devices, medicines, and copy machines. taking a look at shares in tokyo fuji films up about a third of one percent. pretty much flat for takeda. takeda may take more time before it can decide on a
buyer. sources say the short listed companies are embarking on a more thorough review of the company. takata was initially hoping to find a buyer and finalize restructuring by the end of the year. sources say key safety systems are top of the list at the moment. we broke this earlier. the yield in japan's 10-year government bond is at the highest level since the b.o.j. introduced negative rate policy in january. let's bring in the head of asia investment strategy at hsbc here in the studio. happy friday. >> take a look at the yield we saw on the 10-year jgb right now. the boj was doing a relatively good job when it came to keeping that yield at zero percent until what happened with the fed. so what are we going to do now? will the yields continue to go up? >> a challenge from policy divergence is going to add pressure on central bank in
europe and japan and now the b.o.j. will come under pressure to buy more j.g.b. in order to achieve its policy objective to control the curve and keep 10-year yield at zero. >> the big question is once again can they continue to buy? are there enough bonds out there? it makes me kind of wonder if it was bad timing that they did introduce this yield curve control back in september. >> i think given the latest this that the b.o.j. will remain committed to s policy objective to keep the yield at zero percent and committed to limit the purchase of government bonds. o i would expect the extension
will continue, to remain the key policy focus. but on the other hand, we expect a shift to a physical stimulus would become the focus for central bank action going have monetary easing and quantitative easing is now facing a challenge. >> facing challenges. so there is obviously a lot of talk about how much longer these rise -- the yield can persist. some saying for the 10 years we could hit 3%. possibly by next year. what if it starts to trickle through and starts hurting economies and stocks as well? >> we think the current new level would be unsustainable given the growth objective of he trump administration if the
president-elect is serious about making america great again. i think given the historical high levels in the u.s. a higher yield and stronger u.s. dollar will not help u.s. growth and i think the fed will huge cautious given the -- the future adjustment to trade policies and what would be the implementation details of the stimulus in the u.s. add to this is going to caution of the fed to return to a more aggressive monetary tightening. and look at the u.s. dollar. the currency of the u.s. dollar has strengthened to the strongest point. and the stronger u.s. dollar is going to wage on growth in the
u.s. i would expect the fed would stay with a gradual and prudent approach in normalizing monetary policy. >> and that seems to be, you know, the desire by the markets, the bond markets in particular. but do you believe that these yields which have really spiked up here in the u.s., do you think you'll gradually come down as we get into next year? we expect u.s. yields would inch down again after the first quarter especially after the honeymoon period for the trump administration is past. i think the market would start to digest the policy implications, the effect of the fiscal stimulus proposed by the strum please administration -- by the trump administration is likely to impact economic growth only in the second half of 2017.
so this actually constrains the federal reserve from shifting a more aggressive, monetary policy. given the uld cap it negative impact of higher yield on growth. betty: it absolutely would. i'm curious just getting back though from the u.s. to asia again, where is the most value going to be right now? >> yeah, i would expect a pretty volatile first quarter in the new year given the uncertainty surrounding the u.s. policies and the interest rate risk. but with the improved profiles u.s., also the corporate earnings and for asia we continue to see opportunities in the domestic driven and
reform oriented economy in china, india, and in the region. domestic factors are going to be more important market drivers in my opinion. betty: all right. thank you so much. the head of asian investment strategy at asia c.c. private bank on the fixed income market. much more ahead. international expansion, details from sydney in a moment. this is bloomberg. ♪
>> this is daybreak asia. i'm in hong kong. >> i'm here in new york. crown resort is surging by the most in a month in sydney on its return to trade and also ving to unload more of its remaining stake. over to paul for more on this story that developed yesterday. what more do we know about crown's plans, paul? paul: multi developments in the
u.s. overnight crown selling an additional 40.9 million shares, 2.8% of the outstanding stock that remained on top of what we heard on thursday with the sale of the 30.4% stake in melco crown on the u.s. listed for $1.2 billion u.s. along with that plan to shell everybody -- shelve its international assets. all of this reaps a total of $1.4 billion. a special dividend and share buyback and as we heard yesterday crown resorts planning to redeploy capital to fund the high growth projects. >> scrapping the spinoff i think some analysts are saying this is quite a surprising u-turn. how are all the changes being received so far? paul: pretty well. that u-turn came from national australia bank saying this is
going to support the credit profile and current credit ratings. citi calling this a significantly lower cost option than spinning off the assets as originally planned. morning star says this is a good outcome for share holders, limited exposure to the volatile gambling scene as well as chinese politics rather critically and now the market seems to agree. crown resorts shares were off about 2% the first couple minutes of trade but recovered strongly now and up 2% right now. we'll continue to watch the markets here. we are seeing a little rebound i guess you could say though it is pretty mixed right now with the japan nikkei leading the gain. about 0.6%. new zealand seeing similar gains as well. retty much flat. looks like it could continue on
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with high-speed internet up to 10 gigabits per second. you wodn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. >> it is 8:30 in singapore a half hour from the opening of trading there. we have breaking news out of singapore. domestic exports. 11.5% up for the month of november. the estimate was for a fall of 2.7%. month to month also rising 13.1%. 1.5% drop. the expectation was for a pickup in november. this is the performance in north asia as a sign post. this certainly is much, much better than expectations, betty. betty: some better news there
in sing more. you are watching daybreak asia. now let's get to the first report news. >> first up china holdings of u.s. treasuries has fallen to the lowest in more than six years. as beijing used its foreign eserves to support the yuan. down more than $41 billion from september the lowest since july of 2010. that means japan has become america's top foreign creditor as its holdings edged down at a slower pace. japan's benchmark bond yield rose to the highest since the b.o.j. introduced its negative rate policy on january 29. it's added 1.5 basis points tracking the renewed sell off in u.s. treasuries and puts pressure on policy makers who -- whose aim is to keep the level around zero percent. the bond yields may also have been influenced by bank of america who said that japan may be on track this year to rescue
its lost decades. we're hearing that verizon is exploring a reduced price or even an exit from its near $5 billion acquisition of yahoo. revealed of ews is another security breach at yahoo independently of ongoing purchase talks with tim armstrong. they are assessing the damage caused by the 2013 breach that affected a billion users and another announced in september. and nintendo is sharply down in tokyo a day after its first foray into mobile gaming despite super mario run being number one down load in the u.s. and uk japan and germany. data h firm super expects super mario to reach 30 million down loads and bring $60 million in the first month. nintendo's share price left when the game was originally announced at the launch of the iphone 7. global news 24 hours a day
powered by more than 2600 journalists and analysts and more than 120 countries. this is bloomberg. ♪ >> thank you. time to see how the asian markets are shaping up so far this morning. haidi? >> we're heading into the end of a very big week but still a few pictures to come. that could really shake what we see the markers doing. we just had the domestic exports coming through from singapore, 11.5% export growth in the month. we were expecting actually a decline of just over 2%. keep in mind that number toneds be volatile. a huge component of manufacturing as well as electronics. some segments if you will that tend to swing that reading from month to month. we'll take a look at how the markets sort of take that news as they get under way in trading in about a half hour's time. this is what we're seeing so far in the region.
in sydney a bit of a drag from the weaker oil price as well as gold continuing to sell off. gold miners are continuing to see weakness when it comes to the session. mining down by 7%, resolute mining. but we're seeing the rally continue when it comes to japanese equities. the topics as of yet raising all its losses for 2016. there is the argument of course, essentially had slept through 2016 and it looks like we're ending the year when it comes to equities on a pretty positive note compared to where we started the year. the nikkei up by 0.7%. there we're seeing that tail wind coming through from the yen at 118. pretty close to year highs when it comes to dollar/yen. of course it's dollar dominance continuing to play out in the asian currency session. but we are seeing some weakness when it comes to financials. this is the insurer there, one of the top decliners up by 2%.
the kospi just holding its head above water up about 0.1%. the other mover in terms of japan is really that bond yield. we had a pretty significant move in the 10-year bond yield a little earlier on. see if we can bring up the chart hitting 0.1% for the first time since january 29th, the highest since the end of january. the highest is the bavenlg of japan deciding to go into negative interest rates. we'll be watching the space pretty closely today given that the bank of japan's target keep in mind is around 1%. all right. let's take a look at how things are shaping up. this is really the key story that's driving the equity session now. dollar/yen at 118. we know all about what the euro did. in fact looking pretty flat at the moment. ro at the 13-year high for dollar/euro and saying we could get parity going into 2017. in terms of oil, this is what we're seeing for new york oil.
%. y about $51, 0.4 yvonne: the fed striking a more hawkish tone and emerging market investors may now have to put their faith in china, china's ability and willingness to control the yen's depreciation could be the key focus now. after the fed rate, really saw the huge sell off in asia currencies. >> bring them up. we can see -- >> south korea, india, china as well. a lot of stress in in the bond market right now as well. >> now that we've seen the tone from the fed the big worry according to a number of analysts and traders is what is china going to do? are they going to continue to defend the currency from falling even further? we saw it fall yesterday of course with other emerging markets, currencies there as you can see, the bottom,
decreasing against the dollar at least another 0.6%. it is now getting up close to that seven to the dollar. how much further are they going to blow through their reserves? we can bring up the chart seeing $279 billion they've blown through in their reserves managing the yuan's declines so far this year. 6.9467 to the dollar. another fresh eight-year low versus the dollar loss about 7% against the green back so far this year. but there was one encouraging sign to the emerging market investors yesterday when they said the fixing rate of a little bit stronger than expected. okay? it's still lower. but it was stronger than expected. so that was -- >> given the dollar moves. >> right. that is an indication that perhaps, you know, china wants to continue to see a gradual depreciation of the dollar. nothing shocking like what we saw in august of 2015. goldman saks analysts in a note yesterday to a client i might add say a fear of a bigger or
more importantly less predictable decline, downward slide in the yuan has taken hold in the market and it poses one of the biggest risks to the market in 2017. yvonne: domestically, steve, what is the expected impact of the fed move on say china's property market? steve: yeah. i mean, we have to look at not just the external situation but the domestic in china as they are still battling a huge debt pile and also of course a slowing pace of growth. you know what? we've heard a number of commentaries coming from the likes of shin -- they put out a six-part commentary yesterday addressing all of these concerns for 2015 including the fed action. let me run through key points. the reason we quote this is often it is what the government prevailing wisdom is i basically saying the impact of the government's move on housing should not be overly exaggerated as housing prices are not expected to see large fluctuations next year.
also, it says the fed move's or hawkish tone will not have a big impact on stock markets. so they're downplaying expectations here. they do not want a rush to the exit. they also did acknowledge the cny will depreciate versus the dollar next year but the chinese public should not exchange for u.s. dollars blindly. again, that is the outflow story. managing expectations. betty: all right. thank you so much, stephen engle there on china. now, treasuries are extending their sell off sparked by the fed decision to raise rates the yield curve measured by the five and 30-year has narrowed by the most in seven years. a sign of the so-called new ormal may be coming to an end. bloomberg's reporter joins us from l.a. first, john, remind us. right? we have been in this new normal that was coined back when they were together at pimco, right? john: that's right.
back in 2009 they came out with a, you know, outlook on the economy and then el erian in the 2010 spoke to the imf and it became one of those terms that explained this weird phase we were in of slow, steady growth where central banks were basically running the show and they were doing everything to keep the economy from crashing even further. but it also sort of limited -- it distorted a lot of elements of the economy. betty: it did. and so why is there speculation now even from el-erian that the new normal is ending because of donald trump? john: well, basically what he says is central banks are running out of ammo, running out of tools to sort of extreme that they got to was this summer when something like one-third of the world's sovereign debt was negative
interest rates. banks in europe, banks in japan. essentially we're paying people, you know, not to -- to borrow money. and that was just like way off the charts. it wasn't doing any good. so now you've got trump in here saying, let's spend a bunch of money and give tax cuts. so with trump and a republican congress, there's finally an opportunity to maybe have some fiscal stimulus to go along with the monetary tools that are being use today prop up the economy. betty: john, i just want to show our viewers one bloomberg chart here. can we pull it up on the yield, on the spread between the 30 and the two-year, which has taken a considerable decline? the curve has really flattened since the fed meeting but, you know, it had been as well since the election i think obviously because i think the shorter end has really come up considerably. so what comes next here?
well, you know, there's el-erian and people like jeff gunlock, people like pimco, the guys there now are saying it can go either way. the thing that seems to be increasing in the age of trump is what they're calling tail risk. basically people don't know what to do with trump. is he going to tweet something one minute and cause a trade war? or is he going to actually stimulate growth through great policies that will make america great again? and it's so hard to read that the risk is unknown, unknown the way pimco put it in a paper they released out today. and they're saying the new normal is still sort of running things because big, driving ctors are income inequality, aging demographics and the continual central bank intervention that are going to
take a long time for trump or anybody to get rid of. betty: john, you said it could go either way. is this good or bad news for investors? john: you know, it sort of depends what you're doing. it's been great news for stock investors and bad news for bond investors. there are opportunities opening up for bond investors and there are concerns that the stock market's been over heated. i mean, there are people saying, no, it might offer good entry points at certain places in the yield curve because they think maybe it'll steepen and also some of these bonds are selling at really, you know, sharp discounts. and so you can get in and you're still making a pretty good coupon. you're getting them at discounts. so there are buys out there. there's buyers and sellers. i think timing will really be the key thing. expert on am not an saying when to time your purchases or sales.
>> this is daybreak asia. i'm yvonne in hong kong. >> jpmorgan chief executive jamie dimon says donald trump is doing the right thing by appointing business executives to key roles in his administration and told bloomberg the president needs to assemble the best team but he ruled out an immediate role for himself in government. >> i've always been quite public about i don't think i am suited to be secretary of treasury. i love what i do. i'm not ready to do something else.
i think it adds a lot of value to america just doing what i'm doing. >> there we go. that's the answer. when i look now as recently as september when i look back at when you were talking about what you thought the next administration would be and this is before the outcome of the election you said you thought it would be very difficult for wall street guys to get confirmed. and to get in. nowwe look at the landscape we have. we have several wall street figures. me of whom you know very well, from goldman saks, exxon mobil, when you look at that cast of people what do you think they'll bring to the administration that's different? what's new that they'll bring in terms of experience? is this a good thing? jamie: obviously i was dead wrong about you're not going to see a wall street person in washington any time soon. you had a complete upheaval. the republicans are in charge and the republicans have not been antibusiness the way you've seen the democrats largely be antibusiness for years. i think if you were going to be a president you should have the best people sitting around the
table. i think it's a mistake for the american public to constantly be told if you work for oil companies, work for a bank, you work for this that automatically makes you bad. you want the best team. and so, you know, honestly i think it's a good thing. a lot of these people are very qualified people who want to, are patriots who want to help the country. they're not going to try to help their former company. these are people with deep knowledge that hopefully will do a great job. >> do you think that now when you look at that sort of shift in terms of wall street that this is a bit of a reset moment for the industry more broadly in terms of what the american people are expecting or what they're likely to see? >> i think it is a reset moment for how businesses will be treated. i've always believed you have 145 million people working in america. 125 million work for private enterprise. 20 million work for government. okay. we hold them in very high regard. firemen, sanitation, police, teachers. but, you know, if you didn't have the 125 you couldn't pay the other 20. so i think business is a huge,
positive element to society and for years it's been beaten down as if they're terrible people or something like that. i think it's a good reset. detroit is a perfect example that you see where civic society, not for profits here, government, business, working together to improve the lives of american citizens. so, yeah. i think the reset has a chance to do the same thing. if you can duplicate and we can do it in detroit and around the country you'll have a huge renaissance. >> again, jamie dimon speaking to bloomberg business week and the interview will be aired in full and featured in the magazine good business issue that is out next thursday. now, a quick check of the latest business flash headlines at this hour. warren buffet will no longer collect $255 million a year in his investments. he will convert his $3 billion preferred stake to common stock after shares rallied long enough to allow the company to force a swap under the terms of his 2008 deal. in an in an 8.5% annual
dividend when he helped finance dow's takeover. the japanese brewer is paying a hefty premium with a $7.6 billion bid for miller's east european assets. that beats the next highest bid by $834 million. crarlsberg c.e.o. says he welcomes the competition. >> the market is not only be bad news for us. we have a formidible competitor in asahi. they are playing in markets in eastern europe where we don't play except for poland so i think we have a good completion in the countries where we are but that's fine. >> share holders criticize who wins the courtroom battle, the company is among six listed asking investors to support the
toppled group chairman. an absolute majority will be needed next week to remove him. foreign investors hold about 19% and some have questioned is fall. they should be allowed to run on app based platforms. the panel says bigger operators must not undercut traditional cabs. the recommendation will be welcomed by uber and its rival. last month the two were said to be close to winning regulatory approval to work in india. traditional cab operators staged strikes in protest. still ahead talking territory. abe and putin agree to cooperate on the running of four disputed islands. we'll be live in tokyo next. this is bloomberg. ♪
> this is daybreak asia. >> time for a quick look at what's coming up over the next two hours here on bloomberg. i know you'll be watching very closely. >> absolutely. we do of course have that coming up in a moment. a look at the dollar strength. we've seen spectacular movement come through when it comes to as a dollar. rising to levels we haven't seen against the euro for instance something like 14 years. 118 now against the yen and the currency seems to be unstoppable right now. going to be discussing what the yuan does next as they seek to stop it from declining too far
too fast. about 9:40 hong kong time we'll do that. further along having a look at gaming in japan. casinos being legalized by the legislature. looking at that. indeed bank of america, he suggests that japan could potentially become one of the world's biggest gambling hubs as the public casino is likely to open. last but certainly not least what about mixed martial arts? at the moment it's becoming hugely dominant. it's all on the way in the next couple hours of bloomberg. >> love it. all right. thanks so much. see you later. japan's prime minister abe and vladimir putin have agreed to cooperate on the running of four disputed islands.
the divide had prevented the two nations from signing a world war ii peace treaty. let's get to our japan and korea managing editor joining us live from tokyo. putin took a little while to get there but is there. how important is this meeting? >> well, yvonne, i think it has a lot of significance in several ways. for mr. putin of course this is his first official visit to a g-7 country since russia annexed crimea in 2014 so the first step toward normalization for him. he's looking for investment to help develop the russian far east. mr. abe, it's kind of an interesting move and shows a little leadership to boldly host this meeting even as the g-7 including japan continues to impose sanctions on russia. japan of course is looking for progress on the long standing territorial dispute that you mentioned. also looking for ways to diversify its energy program so it might be less dependent on middle east oil imported.
>> what do we know about what they discussed in those few hours? >> so it was a fairly long meeting. a lot of it was with them and only their translator so no other officials and we know that it started off very friendly. mr. abe made a joke about how the hot springs might help mr. putin ease his physical fatigue and might also take out some of the fatigue from their bilateral relationship and discussions on some of these issues. we know it also touched on some difficult topics. mr. putin expressed discontent over the missile defense u.s. s japan hosts -- the defense system. mr. abe said these are only for defense purposes and no other countries need to worry about any kind of attack or anything like that. then they switched to the territorial dispute. this is a very difficult topic. so sfor historical perspective
of course russia declared war on japan in august, 1945 one week before the end of the war. they took these four islands which japan calls the northern territories and russia calls the southern isles. russia believes they took the islands fair and square if you can call it that. japan still wants them back. and so that's where they are right now. and those talks are continuing. >> thank you so much there in tokyo from us. that is it for us. plenty more still to come. bloomberg markets asia is up next. yvonne, we are counting down to several more market opens in asia on this friday. >> china in particular going to watch as the dollar dominates. have a great weekend. we'll do it again next week. this is bloomberg. ♪
rishaad: 9:00 in singapore, 8:00 in the evening on the eastern seaboard of united states. --from bloomberg's head is asia headquarters, this is daybreak asia. ♪ rishaad: for the dollar dominates the trade as they shun safety, gold slumps again, they got -- the yen turns positive. sophie: the willingness of the yuan. rishaad: yahoo! is